Landlords take legal action over rent freeze as leaked emails show hikes already planned 'as soon as possible' next year

A coalition of landlord and lettings bodies is seeking legal advice on the Scottish Government’s rent freeze and eviction ban legislation.

Emergency legislation was approved on October 6 to freeze rent amid the cost-of-living crisis, which will see around a million Scottish households have their rent capped for at least six months. It comes as leaked messages have revealed landlords are already planning rent increases in the capital from April 2023 as soon as the freeze is lifted.

The latest quarterly report from Citylets shows that the average rent in the Capital for a two bed property is now £1,225 a month – up more than seventeen per cent on last year. The report also says many letting agents in Edinburgh believe they “have never operated in a more competitive market.”

According to tenant union Living Rent, landlords have already notified some tenants in the city that they recognise the current freeze but can’t guarantee prices won’t go up, while others offered advice for serving intent to increase notices in January – to make the increases effective as soon as possible in April 2023. But the sector is now seeking legal advice on whether the legislation breaches the individual rights of landlords in Scotland, including a breach of the European Convention on Human Rights.

Landlords seek to challenge rent freeze

The Scottish Association of Landlords (SAL), Propertymark, the National Residential Landlords Association (NRLA) and Scottish Land and Estates (SLE) are joining forces and said they will consider all legal options available to them. A decision from top legal counsel is due within the next month.

Ministers have been accused of exacerbating the housing crisis by failing to encourage investment in building homes and it's claimed a freeze will deter construction. John Blackwood, SAL chief executive said: “With a heavy heart, SAL, in partnership with SLE, the NRLA, and Propertymark is taking legal counsel about the Scottish Government’s rent freeze and eviction ban legislation. Seeking a legal opinion has been our last resort because our concerns are not being listened to by the Scottish Government.

“This emergency legislation is high-minded in spirit but lacking in the kind of detail landlords need assurance about. Uncertainty for landlords only creates ambiguity for tenants, and I do not think the government appreciates the level of confusion it has now created. We have repeatedly said we are all willing to work with the Scottish Government and ministers. This is a tough time, but that does not excuse ill-designed legislation that may be the final straw for the private rented sector.

“We are gravely concerned that in a bid to do something to help tenants, the Scottish Government have forgotten the underlying stresses in the PRS that we have been warning about for years.”